Used car values continue downwards trend
Used car values fell in October according to data from cap hpi.
It found that average three-year-old vehicles with 60,000 miles declined by 4.2%, or £850.
This is the largest drop in a single month since the introduction of cap Live in 2012 and the largest fall since May 2011, over 12 years ago.
Meanwhile, values at the one-year age dropped by an average of 3.6% in the month, equivalent to £1,225
Derren Martin, director of valuations at cap hpi, said: “It has been a fascinating month witnessing how prices have been affected and cap Live values have moved during the hugely challenging month of October. While used values do generally remain high from prior years’ increases, there is no escaping that this is a considerable reduction in value.
“Indeed, In the last 10 years, we have only witnessed monthly drops in Live values of over three per cent on three occasions – November 2014, May 2019 and November 2020, and this is the largest October fall ever recorded.
“This is a considerable realignment, with values now having dropped by a cumulative 13.6% in seven months since April. Overall, October has been a ground-breaking month for used value drops. Large reductions both for the time of year and in general, a considerable realignment following three strong years of upward movements or stability. Market prices are shifting, but they remain close to 20%, for petrol and diesel vehicles at least, above where they were at the start of 2021. This remains a realignment, albeit significant, not a crash.”
